The Interactive Strengths of Globalization - Research Paper Example

? Running Head: GLOBALIZATION OF INFORMATION TECHNOLOGY Globalization of Information Technology School The interactive strengths of globalization, the rapid and unrestricted flow of information and the latest innovations in communications technology has made time and space immaterial. Today’s information advances and the globalized economy have deeply and permanently reshaped the economic, educational, political, and social setting of the world. The once limited, slow, and conservative tempo of societal transformation has now become borderless, fast, and far-reaching. The new globalized economy has become dependently structured on modern and digitized culture (Passaris, 2006). This paper will assess the benefits and detriments of information technology in significant areas of industrial structure, workforce, financial markets, healthcare, education, journalism and media. Moreover, the Digital Divide caused by IT access inequalities will be explained. Globalization: Its Benefits and Demerits Globalization is the process of producing a net of linkages through a stream of information, technology, populace, and goods and services. In economics, globalization creates worldwide free market and capital flows, employs international transactions, encourages foreign direct investments, and aids in fast and extensive dispersal of technology (Smith & Doyle, 2002). Pro-globalists affirm that globalization speeds up economic development, thus providing worldwide quality-living; promotes higher profits and presents larger options for low-cost goods and services; raises employment and salaries and assists in the upgrading of working status and defends workers’ rights; and aids in environmental protection and conservation through national funding of ecological development. Moreover, globalization gives assistance and support to second and third world nations through increased economic expansion; alleviates poverty and hunger in the developing nations; safeguards civil rights; and promotes democratic governance. A century ago, today’s experience of modern quality life brought about by the global digitized economy was beyond imagination. The new globalized world created improved health, longer life span, computer literacy, comfort, and higher living standards (Batterson & Weidenbaum, 2001). From an anti-globalist’s standpoint, globalization brings financial disasters and poverty for the sake of greed and power; amplifies global income gap between the rich and poor nations; affects the cross-border displacement of US jobs to below minimum salary factories unprotected by workers’ rights; and abuses ecology and environment for financial greed, thus worsening environmental conditions. Additionally, a globalized economy subjects developing nations to unjust trade and extra financial burdens; sustains world commerce in mass oppression and slavery; pressures the independence of nations by weakening their national policies on world trade; and risks the health, economy, and social status of the developing nations (Batterson & Weidenbaum, 2001). The Globalization of Information Technology Information Technology (IT) is a motivating channel in global integration through efficient information flow and distribution. The early expansions in computer and telecommunications technology in the nineties have caused extensive upgrading in information access and economic prospects that improved competence in every economic zone. IT system of communication assists the development of manufactured goods, designs, and reserves among nations and their population despite distance (Information Technology and Globalization, 2006). Today, IT products are common and used in virtually all transactions of business and interactions of mankind. The fast development of IT and its applications have redefined global experience. Three decades ago, prior to the introduction of personal desktop computers, people used the typewriter which allow simple paper documentations devoid of text manipulation and storage. Two decades ago, there was limited availability of the heavy and outsized mobile phones. In accordance with details from the US Wireless Quick Facts (2009), in 2009, there were 285 million US subscribers to cellular phone plan. Cell phone users surpassed statistics of fixed line telephone users in several developing countries. Moreover, the introduction of the Internet and World Wide Web fifteen years ago has renovated global commerce. Modern IT produced innovative means of business transactions and control over management, production and market of goods; created further employment; and enabled easy access to workers and business partners (Technology and Globalization, 2010). Another significant restructure facilitated by the rapid distribution and access of information through the Internet is in the news industry. Nowadays, regardless of geographic location, mankind communicates by means of chat rooms, electronic mails, instant messaging systems, social networking websites, such as the Face Book, Friendster, and Twitter. Education has likewise dramatically transformed from outdated academic information from school and national libraries to electronic information provided by websites or any Internet powered communication sites. Websites have now become the major supplier of information for all masses (Technology and Globalization, 2010). Transforming America’s Industrial Landscape and its Workforce Modern Information and Communications Technology (ICT) through digitized telecommunications, information and web applications has redefined America’s industrial setting and workforce. ICT created long-term productivity results through the utilization of precise electronic approaches in management, manufacture, and distribution of goods (Technology and Globalization, 2010). The rise in worldwide electronic economy has improved the living conditions of humanity. In 1998, Internet employment accounted for approximately 1 million US jobs and produced $300 billion national income, exceeding the energy and telecommunications divisions. America’s Internet commerce amplified to 174 % annual rate from 1995 to 1998 and accounted for 8 % of the entire economic productivity which is equivalent to roughly 30% of the total US economic growth (Walker, 1999). Alongside the increase in employment brought about by new technologies is the emergence of new industries, such as Internet access providers and designers of web and graphics. However, modern technologies have likewise reduced or removed other industries and employment connected with them, such as manual and electric typewriters (Technology and Globalization, 2010). IT innovations have restructured business practices: (1) Modern inventory systems reduced delivery costs and time and enabled quick and inexpensive communications between businesses and consumers; (2) IT and Internet-based transactions through the "Business-to-business" (“B2B”) trade have facilitated easy buy-and-sell arrangements without buyers having to personally access the products in wholesale or retail shops; (3) The flourish of online employment marketplaces allowed efficient and trouble-free connections between businesses and their workforce; and (4) The Internet allowed job announcement, recruitment and resume postings in less time consumption (Technology and Globalization, 2010). Figure 1, shown below, shows the gradual growth of global e-commerce; the past growth illustrates a steady upward trend. Source: U.S. Retail E-Commerce Growth Rate Rebounds in April after Soft March (2008) IT-influenced technologies have integrated the US workforce with a large demand for computer management, software development, data supervision, manufacture of state-of-the-art devices, and technology support services (Technology and Globalization, 2010). IT innovations and applications are projected to swell the national production output by 68% from 2002 to 2012 (U.S. Bureau of Labor Statistics, 2010). Figure 2, shown below, illustrates the changes in IT-employment from 1994 to 2014 (projected) for the information technology sector and agriculture sector. Evaluating the two industries, it is evident that the demand for information jobs or knowledge jobs will achieve a stable momentum, whereas agricultural employment will continue to decline, with a projection of one million jobs mislaid by 2014. Source: Industry output and employment projections to 2014 (2005) by J. M. Berman, Bureau of Labor Statistics The increased demand for IT workers augmented their income levels; however it has caused a reduction of employment in labor-intensive jobs or jobs that use machineries. Likewise, industries incapable of modern IT adaptation will not survive the tough competition in the new high-tech economy. Those industries unwilling to retrain their workforce to the new IT trends may fall further behind (Technology and Globalization, 2010). The employment and unemployment caused by the power of information technology in the today’s modern economy is drastically changing the structure of the industrial empire of the US. The computerization of assembly lines has decreased the workforce in manufacturing. Clerical jobs have been eliminated. On the other hand, IT jobs, such as robotics designers, software writers, computer engineers, and data encoders have provided employment for IT-skilled workers (Technology and Globalization, 2010). Impact on Financial Markets Improvements in telecommunications and information technology has tremendously altered the framework of the global financial marketplace through reduced expenditures on transactions, increased competitiveness, and equal opportunities for all investors worldwide. Communication exchanges through the Internet created a limitless network of international trading which has aided in more accessibility of product ventures to investors around the world; increased and improved organization in the marketplace; and lowered the costs of transactions (Cheung, 1999). Governments worldwide implemented policies that would break down barriers between local and foreign participants in the marketplace. These policies abolished restrictions on expansion and competition among actors in financial markets. The quick and protected transactions of local and international investors; efficient data and record storage in the management of financial establishments; unprecedented access to information on business opportunities for big and small investors and borrowers; and access to economic trends of financial institutions are just a few of the benefits derived from the emergence of an increasingly interrelated global marketplace and IT. High capitalists are allowed online access to foreign stocks, bank loans, and financial ventures (Technology and Globalization, 2010). Improving Sectors of Society The IT era has revolutionized other fields in society, such as education, health care, journalism and media. Modern advances in information and communications technology have created vast improvements in services and global access. Through improved access to those areas, modern IT has broken down hindrances to economic growth, thus promoted better lives for people, particularly those in the developing countries (Technology and Globalization, 2010). Education IT has provided learning opportunities that defeats hurdles of geographic locations. Modern IT has likewise improved the substance of educational materials and tools. Through distance education, students learn through recorded videos of instructions and educational television programs. Online or internet education courses offered by several institutions worldwide alongside great progress in educational software development has promoted remarkable increase in enrollment despite distance. Through the years, with the more diversified online academic challenges through audio and video net links; and increased quantities of educational online materials and software, distance education has been a top preference for learners (Technology and Globalization, 2010). Figure 3, shown below, illustrates the popularity of online courses among university students, with 75% using online courses as part of the undergraduate practicum. Source: Making the Grade: Online Education in the United States (2006) by E. Allen & J. Seaman, Sloan Consortium The Internet and worldwide web exceptionally offer equal chances for learners around the world to broaden the scope of their knowledge and facilitate liberty for students to go outside their classroom’s physical limitations and get access to practically boundless amounts of information on subject matters in classroom discussions. In addition, Internet use for coursework offers students free control on their interests and reinforces their research and exploratory talents (Technology and Globalization, 2010). Health Care The accelerating pace of information technology on medical institutions have facilitated the control and prevention of rising communicable diseases; better communications between patients and health care providers; fast gathering and dissemination of precise and detailed medical information; and efficient responses to disease outbreaks. Using IT, several health issues in the deprived areas of the world are being tackled and found solutions. Through electronic images and records, health professionals are able to share information or give consultations online. Through the global positioning system or GPS, health institutions are able to monitor the spread of infectious diseases (Technology and Globalization, 2010). Journalism and Media The merger of IT and the globalized society gave way to a redefined and unrestricted journalism age. Downloads of news on the internet provided lower costs, faster access, and a variety of sources on news and events happening in every corner of the world. There are no restrictions on word count and air time on online news, unlike the print media and television. The birth of Cable Network News (CNN) with its around-the-clock news coverage triggered opinionated discourse that transformed the entire journalism and media industry. The general public soon began turning to the internet for more up-to-date news, consequentially collapsing some print media industries, such as newspapers and magazines. The growth of web syndication and interactive online user forms threatens the print media (Technology and Globalization, 2010). Short-Term Capital Concerns IT has made an almost perfect global financial marketplace; however, it likewise raised the possibility and the probable price of instability in the market. Because the national banking systems are openly available and within easy reach in just a click on the computer, investors worldwide can easily withdraw and transfer their cash to another financial institution or business. This fast withdrawal of investment can drastically impact the economy of the nations concerned (Technology and Globalization, 2010). An up-and-down exchange rate of a country’s currency could make trade and investment plans unattractive for potential investors. The flow of short term investments is dependent on the economic status of a country. If an investor sees that the currency of the country where his money is invested is fluctuating, he can easily remove his foreign stocks and sell or invest them in another country with stable economy and high national currency (Technology and Globalization, 2010). Technological Age Concerns “Knowledge economy” is an economy built by information technology wherein a country’s efficiency and affluence are reliant on information access and on the capacity to constructively use it. The enormous guarantee of today’s improved IT for better living standards for mankind is threatened by forecasted gaps in technological access. These gaps present possibilities of strengthening and amplifying the present disproportions in living standards. IT and knowledge accesses vary within and amid countries. The assurances provided by IT necessitate access to newer technologies and fresher knowledge, thus without these two, it would be impossible to implement IT to its utmost potential (Technology and Globalization, 2010). The wide disparities in IT openness could cause the segregation of huge masses from the profits of the knowledge economy. While knowledge important to improving social welfare and economic opportunity progressively relies on IT, these disparities in IT access, called "digital divides," will strengthen local and global gaps in standards of living (Technology and Globalization, 2010). The U.S. Digital Divide Although advances in the US digital divide have been observed today, there are still obvious signs in the form of culture and wage levels that demonstrate huge gaps in IT access. The newest digital barrier today is Broadband access between American income groups and communities. In the 2010 report by the Social Science Resource Council, it was exposed that: “Broadband access is increasingly a requirement of socioeconomic inclusion” and that “Price is only one factor shaping the fragile equilibrium of home broadband adoption, and price pressures go beyond the obvious challenge of high monthly fees. Hardware costs, hidden fees, billing transparency, quality of service, and availability are major issues for low-income communities” (Dailey et al, 2010). Families living in rural areas and owning broadband system still fall further behind those households in the metropolis with broadband access by 18 to 21%. However, regardless of the Internet access inequalities, America has made extraordinary success in bridging digital gaps. According to the World Internet Usage Statistics News and World Population (2010), Americans with Internet access boosted by 135% from 2000 to 2008. Furthermore, Internet use in remote places in the US follows the national average by 60% of rural residents accessing the Internet from any location, relative to the national average of 71% (Horrigan & Smith, 2007) IT use has swelled among American populace, in spite of differences in age, culture, distance, education, gender, or income. For example, the female population has equaled the males’ Internet usage, thus bridging the digital divide between them (Technology and Globalization, 2010). Global Digital Divide Worldwide IT access is tremendously asymmetrical. Approximately 2 billion people around the world are using the Internet, and so far, there are 6.8 billion people in the globe. Therefore, merely 30% of the global populace is online (Technology and Globalization, 2010). The uneven IT access around the world may be due to gaps in income levels. The cost of Internet access in many developing countries is relatively high than in the developed countries, as illustrated in Figure 4, shown below. Source: The World Bank (2007) China and Turkey’s broadband access for one month costs very high at over $10, as compared to America’s $0.50 average per month. The broadband adoption of China and Turkey is almost 8% of their gross domestic product or GDP. This is why majority of the developing countries fall behind the cyberworld trends. Majority of households in these countries do not even have computers, thus practically no Internet. The broadband cost for a little amount of time could cost a day’s compensation (Technology and Globalization, 2010). While developing countries are way behind information technology, still the present technology era plays a significant role in the fast bridging of the digital divide between the rich and poor nations. For example, the introduction and use of mobile communications instead of building telephone sites that would carry lines to households in the developing countries may provide greater opportunity for the developing nations to draw level grounds on technology use with countries of the First World through the elimination of a development process. This action is called the “leapfrog effect” (Technology and Globalization, 2010). References Allen, E. & Seaman, J. (2006). 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Retrieved 4 March 2011 from: http://arstechnica.com/old/content/2007/05/10-85-per-month-broadband-in-china-not-such-a-hot-deal.ars World Internet Usage Statistics News and World Population. (2010). Internet World Stats. Retrieved 4 March 2011 from: http://www.internetworldstats.com/stats.htm Read More